Good morning,
Has anyone done a 1031 Exchange disposal in sage? Just want to confirm if I should select Taxable Exchange as the disposal method.
Thanks,
Hello Juan,
Frist, I am not an accountant.
It is my understanding that a 1031 exchange is an exchange of similar properties where a Taxable Exchange is an exchange of dissimilar property.
So that, if this is a 1031 exchange it would be a Like-Kind Exchange, not a Taxable Exchange.
~Delray
Yes! Thanks!
What did you classify the 1031 exchange account as while the funds were in this account? I need to figure out how to do a 1031 exchange in Sage...I contacted Sage and was told that it sounds like I need to do a general journal entry - but no other assistance was given!!
Hello Tracy,
The 1031 exchange (Like-kind exchange) pre-2018, I understood very well, but since then, not so much.
The problem here is that the rule changes since 2018 have been a bit muddled, unclear, and have changed a few more times.
I have had to do a bit of research (which means I had to bug an accountant), and it appears that the post 2017 rules would be that exchanges of personal property which qualified as like-kind exchanges prior to 2018 are treated as taxable exchanges in 2018 and later.
It now appears Property Types P, A, T, and Q which for the 1031 exchange once used the Disposal Method of Like-kind exchange are now to use the Disposal Method of Taxable Exchange.
~Delray
*Community Hub is the new name for Sage City